The contribution of trade to production-Based carbon dioxide emissions

Abstract

International trade and emission offshoring can reduce a country's domestic carbon dioxide emissions, helping it to reach emission reduction targets set under the prevailing territorial climate policy frameworks. We ask what is the net contribution of trade to national production-based emissions. Existing metrics (consumption-based emissions and the technology-adjusted balance of emissions embodied in trade) do not answer this question. Based on global multi-regional input-output tables and the domestic technology assumption, we calculate net emission onshoring as the difference between the emissions embodied in gross exports (onshoring) and the emissions avoided by gross imports (offshoring) for 43 countries between 20 0 0-2014. We find that the USA offshores emissions and China onshores emissions; the aggregate trade balance explains this result while the trade composition plays a negligible role in either country. In general there is no cross-country relationship between net offshoring and per-capita income, and neither one between trade specialization in emission-intensive products and per-capita income. The developed countries' absolute decoupling of economic growth and production-based emissions since 20 0 0 is "genuine" in the sense that it reflects domestic economic developments and is not owed to emission offshoring.

Financial inclusion and trade adjusted carbon emissions: Evaluating the role of environment related taxes employing non‐parametric panel methods

“…Wherein the literature concerning emissions could be found in two parts: namely, production‐based emissions (PCO2) and CCO2 in relation to various economic, financial, and environmental indicators. Concerning the former (PCO2), several studies provided empirical evidence and relevant policies to tackle the said issue (Liang et al, 2018; Wang & Zhou, 2020; Wu et al, 2022, among others). However, the empirical literature the CCO2 emissions and its determinants is scant and yet to grow.…”

“…Based on the literature review, it is summarized that most of the previous studies by Sun and Ouyang (2016), Wei et al (2022), Liang et al (2018), Wang and Zhou (2020), and Wu et al (2022), focus on one side of carbon emissions in order to achieve sustainable development goal of the clean environment; however, Adebayo et al (2022), Knight and Schor (2014), Adebayo et al (2021), He et al (2021), Hassan et al (2022), Gyamfi et al (2022), and Kirikkaleli and Oyebanji (2022) focus was also mainly trade adjusted carbon emissions. However, these studies also ignored the role of financial inclusion and environmental taxes.…”

Carbon emissions versus value-added in export-driven countries: case of Vietnam

“…Recently, Kim and Tromp ( 2021 ) investigated carbon emissions embodied in trade in South Korea between 2000 and 2014 by employing MRIO and found significant increases in emissions embodied in exports and imports, which lead to an increase in total emissions in the country. Wu et al ( 2022 ) calculated onshoring and offshoring emissions of 43 countries from 2000 to 2014 by using the Emissions Embodied in Bilateral Trade (EEBT) approach, and found that the main reason for offshoring emissions in the USA and onshoring emissions in China is the trade balance, which is not related to the trade composition. In contrast, Germany and Japan's onshoring emissions are mainly driven by trade composition.…”

Study on the synergistic effect of foreign trade, technological progress, and carbon emissions

“…Although carbon trading can also increase the price of carbon trading through the crowding-out effect on firms' R&D investments, which in turn discourages green technology innovation, it can still significantly reduce carbon emissions and carbon intensity (Zhang et al, 2022). Whether from a city perspective (Yu et al, 2017), a provincial perspective (Zhang et al, 2021(Zhang et al, ), 10.3389/fevo.2022 or a national perspective (Wu et al, 2022), the evidence of the decoupling effects of economic growth and environmental issues all further confirms the positive effect of foreign trade on the environment. Pu et al (2020) argued that total trade is the main factor driving the growth of carbon emissions.…”